IMF How To Notes

How To Design Excise Taxes on Alcoholic Beverages

Author/Editor:

Mario Mansour ; Patrick Petit ; Fayçal Sawadogo

Publication Date:

December 4, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This How to Note examines the complex interplay between excise taxes on alcohol and alcoholic beverages, their revenue yield, and the public health concerns related to alcohol consumption. The note suggests guidance on how countries can approach the design of excise taxes on alcohol based on theoretical principles as well as empirical evidence drawn from international experience. Key questions addressed include: How important is alcohol consumption, and what form does it take across countries of different income levels? What has been the trend in alcohol excise tax revenue? How can countries design simple excise regimes that yield revenue while having the potential to contribute to reducing the externalities and internalities caused by alcohol consumption?

Series:

How-To Note No 2023/004

Subject:

Alcohol tax Consumption Economic sectors Excises Financial crises Health National accounts Revenue administration Taxes

Frequency:

occasional